Alibaba Subsidiary Takes Majority Stake in Ant Group's Bank Macao In Strategic Move to Enhance Digital Payment Services

Alibaba Group Holding BABA backed Hong Kong lottery firm AGTech Holdings snapped a majority stake at Ant Group’s digital unit Bank Macao for $30.26 million.

Now AGTech owns a 51.5% stake in Bank Macao, SCMP reports. AGTech operates electronic payment services and consumer services from lottery to ticketing platforms.

AGTech hopes to “enhance synergy” between the two companies’ digital payment and bank services and develop “distinctive cross-border financial services.

Jack Ma’s Ant Group remains Ant Bank Macao’s second-largest shareholder, SCMP cites familiar sources.

Alibaba fintech affiliate Ant Group split its operations into business units in March: Ant International, Ant Digital Technologies, and database operation OceanBase.

Last week, reports indicated that Alibaba had bagged a clean chit from the domestic regulator after over three years since the end of 2020.

Alibaba Group stock is down 13% in the last 12 months as the regulatory crackdown and lackluster economy took a toll on the e-commerce juggernaut. Ant Group’s initial public offer succumbed to the regulatory crackdown at the last moment.

In August, Alibaba clocked a fiscal first-quarter topline growth of 4% year-on-year to $33.47 billion, missing the analyst estimate of $34.81 billion. Net income sank 29% Y/Y to $3.34 billion.

Investors can gain exposure to Alibaba through Defiance Quantum ETF QTUM and Goldman Sachs Hedge Industry VIP ETF GVIP.

Will Alibaba Stock Go Up?

When trying to assess whether or not Alibaba will trade higher from current levels, it's a good idea to take a look at analyst forecasts.

Wall Street analysts have an average 12-month price target of $106.45 on Alibaba. The Street high target is currently at $130.0 and the Street low target is $85.0. Of all the analysts covering Alibaba, 9 have positive ratings, 2 have neutral ratings and no one has negative ratings.

In the last month, 9 analysts have adjusted price targets. Here's a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering Alibaba have performed in recent history.

Stocks don't move in a straight line. The average stock market return is approximately 10% per year. Alibaba is 9.82% up year-to-date. The average analyst price target suggests the stock could have further upside ahead.

For a broad overview of everything you need to know about Alibaba, visit here. If you want to go above and beyond, there's no better tool to help you do just that than Benzinga Pro. Start your free trial today.

Price Action: BABA stock is down 1.49% at $82.10 at the last check on Tuesday.